Business AOS2 Human recources

• Human resource management

  Is the organization of employees’ roles, pay, and working conditions.
• Maslow’s Hierarchy of Needs

  Is a motivational theory that suggests people have five fundamental needs, and their sequential attainment of each need acts as a source of motivation
• The 5 principles Goal setting theory (Locke and Latham)

  1. Setting clear goals
  2. Setting challenges and achievable goals
  3. Secure commitment to goals
  4. Provide feedback
  5. Complexity of task
• Goal setting theory (Locke and Latham)

  The Goal Setting Theory is a motivation theory that states that employees are motivated by clearly defined goals that fulfill five key principles.
• Business Objectives

  A desired goal, outcome or specific result that a business intends to achieve
• Maslows Hierarchy of needs

  Is a motivational theory that suggests people have five fundamental needs, and their sequential attainment of each need acts as a source of motivation.
• Maslows Hierarchy of needs

  5. Self-actualization needs (personal growth)

  4. Self-esteem needs (recognition, promotion, bonuses)

  3. Socials needs (love and belonging)

  2. Safety needs (security and protection)

  1.Physiological needs (basic needs)
• Physiological needs MASLOW

  DEF: Basic needs such as food, water, air, shelter and other physical requirements.

  HRM: Payment for job; wages or salary and providing a job
• Safety needs MASLOW

  DEF: Security and protection from physical and emotional harm

  HRM: Creating job security, Ensuring the employee has safe and healthy work conditions
• Social needs MASLOW

  DEF: are the desires for a sense of belonging and friendship among groups, both inside and outside the workplace.

  HRM: Organised employee activates, birthday celebrations, meals, parties, sporting activates
• Esteem Needs MASLOW

  DEF: Esteem needs are an individual’s desire to feel important, valuable, and respected.

  HRM: Merit rewards (bonus), Promotion
• Self-actualization needs MASLOW

  DEF: Are the desires of an individual to reach their full potential through creativity and personal growth.

  HRM: Challenging work allowing for creativity, Participative decision-making
• The Four Drive Theory - Lawrence and Nohria's

  A motivational theory that suggests that people strive to balance four fundamental desires.

  • Drive to acquire
  • Drive to bond
  • Drive to learn
  • Drive to defend
• The drive to acquire (four drive theory)

  Is the desire to achieve rewards and high status.

  e.g. higher wages or bonuses
• The drive to bond (four drive theory)

  Is the desire to participate in social interactions and feel a sense of belonging.

  How manager fulfil: introducing recreational team bonding activities, such as sports days.
• Drive to learn (four drive theory)

  Is the desire to gain knowledge, skills, and experience.

  Mangers fulfil by: facilitating internal and external work-related training courses.
• Drive to defend (four drive theory)

  Is the desire to protect personal security as well as the values of the business.

  Managers fulfil by: ensuring that managers represent business values.
• Goal setting theory (Locke and Latham)

  Is a motivation theory that states that employees are motivated by clearly defined goals that fulfil five key principles.

  1. Setting clear goals
  2. Setting challenges and achievable goals
  3. Secure commitment to goals
  4. Provide feedback
  5. Complexity of task
• Performance-related pay(motivation strategy)

  Is a financial reward that employees receive for reaching or exceeding a set business goal. E.g. a bonus, a Pay rise

  Adv- Employees can be motivated quickly through the incentive of financial rewards.

  Dis-Can increase the expense of wages significantly
• Career Advancement (motivation strategy)

  Career advancement is the upward progression of an employees’ job position.

  ADV: Employees may feel more valued by the business when promoted.

  DIS: Promoting employees to higher positions will usually involve an increase in the cost of wages
• Investment in training (motivation strategy)

  Is allocating resources to improve employee skills and knowledge. ON AND OFF SITE TRAINING

  ADV: Employees can complete tasks more efficiently and effectively after improving their skill set.

  DIS: Training programs can be costly for a business.
• Support strategies (motivation strategy)

  Involve providing employees with any assistance that improves their satisfaction at work.

  ADV: Employees may feel more valued by managers, as their well-being is being considered.

  DIS: It can be time-consuming for a manager to maintain relationships with staff.
• Sanction (Motivation Strategy)

  Involve penalizing employees for poor performance or breaching business policies.

  ADV: Can pressure employees to act in accordance with management instructions. also cheap

  DIS: Can create a negative corporate culture as tasks are completed out of fear.
• Management by objectives (performance managment strat)


  involves both managers and employees collaboratively setting individual employee goals that contribute to the achievement of business objectives. (uses SMART goals)
• Performance management strategies:

  -Management by objectives

  • Appraisals
  • Self-evaluation
  • Employee observation
• Performance appraisals (performance management strat)


  Involve a manager assessing the performance of an employee over the appraisal period against a range of criteria, providing feedback, and establishing plans for future improvements.

  ADV: Communication between managers and employees during one-on-one reviews can improve workplace relationships.

  DIS:This process can be time consuming as managers individually review each employee's performance.
• Self-evaluation (performance management strat)

  Involves an employee assessing their individual performance against a set of criteria.

  ADV: can save managers time, as employees evaluate their own performance.

  DIS: If employees are dishonest, the self-evaluation process can be a waste of time.
• Employee observation (performance management strat)


  Involves a range of employees from different levels of authority assessing another employee’s performance against a set of criteria.

  ADV: The manager can gain multiple different perspectives about an employee.

  DIS: Making other staff assess an employee’s performance can disrupt their normal workflow and business productivity.
• Termination

  Occurs when a decision is made by either the employee or employer to end the employment contract.

  types:

  • Retirement
  • Redundancy
  • Resignation
  • Dismissal (fired)
• Retirement (voluntary Termination)

  Involves an individual deciding to leave the workforce permanently as they no longer wish to work.

  It is common for older people
• Resignation (Voluntary Termination)

  Involves an employee voluntarily terminating their own employment, usually to take another job position elsewhere.
• Redundancy

  Involves an employee no longer working for a business because there is insufficient work or their job no longer exists.

  Reasons:

  • The employer is closing part of or all of its business;
  • Business is relocating
  • New technology is introduced
• Dismissal

  Involves the involuntary termination of an employee who fails to meet required work standards or displays unacceptable or unlawful behavior. E.g. stealing inventory
• Entitlement considerations

  Are legal obligations an employer owes to its employees following the termination of their employment contract.

  Employers need to do for employees when they leave:

  • Wages still owing
  • accrued annual leave and long service leave entitlements
• Transition considerations

  Are social and ethical practices that a manager can consider implementing when terminating employment. Transition refers to either the employee or the business is making.

  E.g. offering resume writing or interview training to employees
• Human resource managers

  Are individuals who coordinate the relationship between employees and management within a business
• Employer associations

  Are advisory bodies that assist employers in understanding and upholding their legal business obligations.
• Unions

  Organisations composed of individuals who represent and speak on behalf of employees in a particular industry to protect and improve their wages and working conditions.
• The Fair Work Commission (FWC)

  Is Australia’s independent workplace relations tribunal that has a range of responsibilities outlined by the Fair Work Act.

  Helping with:

  • Set national minimum working standards
  • Establish awards
  • Approve and monitor enterprise agreements
  • Respond to serious workplace issues (unfairly fired employees)
• National Employment Standards

  Are the minimum entitlements an employer owes its employees, which are set out by the Fair Work Commission (FWC).